Thursday, January 9, 2020

Overseas Education Limited OEL Review

https://links.sgx.com/FileOpen/OEL%20Financial%20Results%20Q3%202019.ashx?App=Announcement&FileID=585222

3Q19 financial statement.
>100 MM loan. total 2 mil of interest + capital repayment requirement every quarter while company is making ~2 MM of net profit. coverage ratio is on low side and without much margin.

The debt is for financing their new campus which is largely completed and they have shifted to new campus. Dividend payout is large with 8% yield. If business turn sour, they will have to cut dividend.
Need to look at cash flow to ascertain the safety

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